Self Invested Personal Pensions (SIPP)

Self Invested Personal Pensions (SIPP) works in the same way for contributions, tax relief and eligibility as a normal type of personal pension plan but the SIPP has a more flexible approach to investments.

A conventional personal pension generally involves the plan holder paying money to an insurance company for investment in an insurance policy. This means the money is invested with relatively little choice or freedom from the plan holder.

A SIPP plan holder can have control over the investment strategy or can appoint a fund manager or stockbroker to manage the investments.  This allows much greater flexibility in what to invest in and for the plan to hold these investments directly and even include commercial property.

For SIPP contracts written under trust, the trustee controls the investment under instruction from the member. It is possible for the plan holder to be the trustee.  If this is the case, an approved administrator must be appointed to carry out investment transactions.

For more advice on SIPPs, please give us a call.

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